(London, Ontario) – VersaBank (TSX: VB) (the “Bank”) announces that none of its outstanding 1,461,460 non-cumulative 5-year rate reset preferred shares, series 1 (the “Series 1 Preferred Shares”) will be converted into non-cumulative floating rate preferred shares, series 2 (the “Series 2 Preferred Shares”) on October 31, 2019 (the “Series 1 Conversion Date”).
In accordance with the Short Form Prospectus dated October 22, 2014, holders of Series 1 Preferred Shares will not be entitled to convert their shares into Series 2 Preferred Shares if the Bank determines that there would remain outstanding on the Series 1 Conversion Date less than 200,000 Series 2 Preferred Shares, after having taken into account all Series 1 Preferred Shares tendered for conversion into Series 2 Preferred Shares. Fewer than 200,000 Series 1 Preferred Shares were tendered for conversion between October 1, 2019, and October 16, 2019. Accordingly, holders of Series 1 Preferred Shares will retain their shares and no Series 2 Preferred Shares will be issued on the Series 1 Conversion Date.
As previously announced, for the 5-year period commencing on November 1, 2019, the annual fixed dividend rate for Series 1 Preferred Shares will be 6.772%, or $0.1693 per share per quarter.
VersaBank adopted an electronic branchless model in 1993, becoming the world’s first branchless financial institution. It holds a Canadian Schedule I chartered bank license and obtains its deposits, and the majority of its loans and leases, electronically. VersaBank’s Common Shares trade on the Toronto Stock Exchange under the symbol VB and its Series 1 Preferred Shares and Series 3 Preferred Shares trade under the symbols VB.PR.A and VB.PR.B, respectively. Visit VersaBank’s website at: https://www.versabank.com.
VersaBank: Wade MacBain, Investor Relations, 800-244-1509 [email protected]